factual

Who is ultimately responsible for locating the site for a Big Apple Bagels store?

Big_Apple_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

BAB will provide the following services and guidance in connection with the establishment of your unit, whether a Production Store or a Satellite Store:

BAB or its delegate will assist you in selecting a site for the Store (Paragraph 3.a, Franchise Agreement). However, you are responsible for locating the site.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–53)

What This Means (2025 FDD)

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisee is ultimately responsible for locating the site for their store. While Big Apple Bagels will provide assistance in selecting a site, the responsibility of finding the location rests with the franchisee. This assistance is part of the services Big Apple Bagels offers before the store opens. The franchisee is expected to use a licensed real estate broker who specializes in commercial real estate to find potential locations.

Big Apple Bagels must approve the chosen site, and they consider several factors during the approval process. These factors include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition from other businesses in the area, proximity to other businesses (including other Big Apple Bagels stores), and the site's size, appearance, and other physical characteristics. The lease agreement for the site must also include specific provisions required by Big Apple Bagels, as stated in the Franchise Agreement.

If a franchisee signs a Preliminary Agreement, Big Apple Bagels will expend time, effort, and incur expenses to inspect proposed sites. The franchisee must submit at least one site within 60 days. If the submitted site is not approved, Big Apple Bagels may extend the 60-day period or terminate the Preliminary Agreement, refunding all but $3,000 of the deposit. However, if the franchisee fails to submit any sites within the 60-day period, they will not receive any refund of the deposit. Ultimately, if the franchisee and Big Apple Bagels cannot agree on a site, a Franchise Agreement will not be granted, highlighting the importance of site selection in the franchising process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.